Superintendence of Companies, trade 220-057282 Dec 2007: The highest society board must approve the net worth tax application to the revaluation of the equity.

For this entity, the revaluation of the equity may be

affected by the imputation of the net worth tax, a decision which requires authorization by the highest social board, board that must approve if the net worth tax applies to the revaluation of the equity or directly to the results.

Law 1175 of Dec 27th, 2007 On special tax benefits for overdue liabilities for 2005 and prior taxable periods

For those passive parties, taxpayers or responsible of tax, fees and contributions, which are administered by entities entitled to collect, nationwide or territorial, public income or assets who have overdue liabilities for the taxable periods 2005 and earlier.

Benefits:

* For total cash payment of the principal liability plus interest and penalties updated for each concept and period, 30% reduction of the

interest due until the date of payment.

* Ease terms of payment with guarantee for up to 3 years for the payment of interest in arrears and penalties updated for the payment of the main obligation, for every concept and period, attributable to taxes, fees and contributions.

The payments and the application for benefits should be made within six months following the entry into force of the Law. Does not apply to debtors that at the entry into force of the Law have overdue liabilities contained in the agreements signed with payment based on Article 7th of the Law 1066, 2006.

DIAN Concept 099609 Dec 2007 special deduction for investment in fixed real productive assets

The deduction for investment in fixed real productive assets proceed with those assets that initially were acquired to be part of the Sales merchandise inventory, and so later withdrew to be part of the property, facility and equipment, providing that the acquisition and withdrawal take place in the same tax period and, as long as they

comply with all the requirements of the law and regulations for the appropriateness of the deduction.

That is because, at the moment when it was decided to change the fate of these assets, the resources used in their purchase come to participate in the expansion or improvement of the operational capacity of the economic entity, which is an investment in real productive assets.

DIAN concept 099610 - Dec 2007 Imports from Duty Free Zones

In this concept DIAN says that sales by industrial users of duty free trade zone to business entities located within the rest of the national customs territory, do not become creditable taxes against VAT for the industrial user because this operation will cause VAT at the time of importation for the importer, for which the industrial user must issue an invoice without VAT, this being the reason for what was stated in the concept of the inappropriateness of tax credit against VAT in connection with the industrial user .

It sustains the official thesis on the fact that in this

type of operation, the VAT was due on the addition of foreign origin, excluding the basis of such costs and expenses.

Accordingly, pretending to propose a tax credit against VAT by the industrial user that has not generated VAT is going against the provisions of Article 485 of the Tax Code.

If the opposite hypothesis were accepted, meaning that the user could take tax credit against VAT, these would have no correspondence with the generated VAT, since the taxable base is made up of the foreign component, and not the national.

Council of State (Administrative Supreme Court), Section Fourth, C.P. Hector J. Romero Diaz: Reduction of the Penalty Benefit for Companies in mandatory liquidation

The Companies in mandatory liquidation are involved in exceptional circumstances because this societies loss their power of free administration of the Equity and they shall pay its liabilities in accordance with the procedure established in the Law 222, 1995.

According to this law the companies involve in mandatory liquidation are allowed to pay its debts once they are recognized inside of the mandatory liquidation procedure and always considering the priority order of creditors determine in the Colombian Legislation.

For the reason explained above, these companies

are under a legal restriction if they have to pay debts that are not recognized inside of the Law 222, 1995 procedure, which is why the tax authority (DIAN) can not denied the reduction of the sanction Benefit if the company does not fulfill the requirement of the effective payment of the penalty.

However, the explained above does not mean that the society is not liable to pay the sanction to the tax authorities, it only recognized a special situation: the legal restriction of the company, meaning that the right of obtain the reduction of a penalty benefit shall not be denied because of a formality. The requirements established in the article 651 of the tax code must be demanded in accordance with the situation of the contributor. (File 15752 October 18th, 2007). 

DIAN Concept 105489 - Dic 2007 Withholding Certificates for taxes different than labor compensations could be issue through electronic media

The withholding certificates for income tax and VAT must be issued with the signature of the payer or withholding agent and with his identification number.

However, the Government determines several exceptions in which the certificates can be issued without the signature in case that the withholding agent develops it through a sequence model printed by a Computer according to the Decree 836, 1991 and Decree 380 de 1996.

Therefore, the withholding certificates for taxes different than labor compensation, could be delivered without the signature of the payer or withholding agent, if they are printed either at the residence of the withholding agent or at the residence of the tax payer using any way that allows the access to the file such as Web Sites.

For the reason explained above, the obligation of issuing the withholding certificates could be satisfied if the responsible one provides the access to the file to the interested person and they are able to print it. This option does not eliminate the obligation for the withholding agent to deliver the physical withholding certificates when the interested person requires it.

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